April 15, 2012, 9:00PM

A forensic investigator who scoured the books of Oakridge and Molalla uncovered error-racked budgets, sloppy bookkeeping, and overspending. She says its a story that will pop up more and more around Oregon, as strains of the recession trickle down to local governments. Full story »

April 12, 2012, 8:17PM

Also, a homeless woman killed in Clackamas last year had her skull split into four pieces, a judge heard today. Find out more details about Molalla's money woes, and guess what police found during a traffic stop near Wilsonville. Full story »

April 12, 2012, 2:37PM

"I've never seen anything like this," Molalla City Manager Ellen Barnes said about the city's financial woes. Recent cuts and budget transfers have put the city on better financial footing, but Barnes still holds concerns about the future. Full story »

April 05, 2012, 6:14AM

Susan Hansen writes: "Molalla's longstanding financial abuses did not go unnoticed or unchallenged. Local citizens, including me, spent countless hours begging for public information and combing through city files." Full story »

March 29, 2012, 9:04AM

Molalla, who hired a forensic auditor to scour the books after staff discovered a serious budget gap, received a bigger blow Wednesday night. According to Oregon law, the city has one year to repay the misused system development charges. Full story »

March 27, 2012, 7:02PM

According to Oregon law, the city will have one year to repay the misspent money. It is unclear, however, where the city will find the cash. The forensic auditor will present her final report to City Council on Wednesday. Full story »

February 09, 2012, 10:15AM

Council voted to bring in Vancouver-based Acuity Group to investigate whether fraud contributed to the city's current budget deficits. The city will host a public meeting Monday to discuss options for avoiding a nearly half-million-dollar deficit. Full story »

January 26, 2012, 9:51AM

Molalla City Manager Ellen Barnes is searching for ways to stop the city's slide toward a significant budget deficit, caused by years of accounting errors, unpaid contracts and unforeseen expenses. The city must balance their budget by the end of the fiscal year in June, she said. Full story »

January 23, 2012, 6:11PM

Two months after taking office, Molalla City Manager Ellen Barnes reveals she inherited a list of problems in the city's budget, including projected general fund deficits and unpaid contracts. She'll address the issues at the city council meeting Wednesday. Full story »

October 17, 2011, 6:00AM

Ellen Barnes starts today as Molalla's city manager, taking over where John Atkins left off. Her top priorities? Establishing a community vision, a more efficient budget, and better roads. Full story »